1 strategic management overview

nsserwanga@yahoo.comnsserwanga@yahoo.com
Strategic ManagementStrategic Management
OverviewOverview
By Alex NathanBy Alex Nathan
SserwangaSserwanga

09/24/1309/24/13
nsserwanga@yahoo.comnsserwanga@yahoo.com
History of Strategic ManagementHistory of Strategic Management
From art of warFrom art of war
From the Greek word ‘strategeia’ meaning theFrom the Greek word ‘strategeia’ meaning the
art or science of being the generalart or science of being the general
Originally known as the grand plan whichOriginally known as the grand plan which
included the strategic plan and theincluded the strategic plan and the
implementation plan of acting on those plansimplementation plan of acting on those plans
The grand strategy approach was later adoptedThe grand strategy approach was later adopted
into business in form of business strategy whichinto business in form of business strategy which
is embedded in strategic managementis embedded in strategic management

09/24/1309/24/13 nsserwanga@yahoo.comnsserwanga@yahoo.com
Cont-Cont-
From the mass production era of the industrialFrom the mass production era of the industrial
revolution in light of the 1revolution in light of the 1stst
and 2and 2ndnd
world warworld war
which destroyed what was in place led to morewhich destroyed what was in place led to more
concern for long term survival hence need forconcern for long term survival hence need for
strategic planning and strategy implementationstrategic planning and strategy implementation
The two main reasons for the ever increasingThe two main reasons for the ever increasing
need for strategic management are1) the everneed for strategic management are1) the ever
changing business environment & 2) the rapidchanging business environment & 2) the rapid
increase in size and complexity of companies.increase in size and complexity of companies.

What is strategic Management?What is strategic Management?
A process that involvesA process that involves
carrying out decisions andcarrying out decisions and
actions to develop anactions to develop an
appropriate strategyappropriate strategy
(means) to achieve an(means) to achieve an
organization's objectives.organization's objectives.

Process whereby managersProcess whereby managers
establish an organization's longestablish an organization's long
term direction, set objectives,term direction, set objectives,
develop strategies to achievedevelop strategies to achieve
these objectives in light of thethese objectives in light of the
internal and externalinternal and external
circumstances, and undertake tocircumstances, and undertake to
execute the chosen action plans.execute the chosen action plans.

Determination of the basicDetermination of the basic
long term goals andlong term goals and
objectives of anobjectives of an
organization, and adoptionorganization, and adoption
of courses of action andof courses of action and
allocation of resourcesallocation of resources
necessary to carry out thesenecessary to carry out these
goalsgoals

Characteristics of strategic managementCharacteristics of strategic management
It is not an event but rather aIt is not an event but rather a
process.process.
Futuristic and long term oriented.Futuristic and long term oriented.
Focus on strategy as a central theme.Focus on strategy as a central theme.
Focuses on creating competitiveFocuses on creating competitive
superiority.superiority.
Top management point of view.Top management point of view.
Prioritizing resource allocation.Prioritizing resource allocation.

The strategic Management FrameworkThe strategic Management Framework
Defining the business of the firmDefining the business of the firm
/ enterprise/ enterprise
Setting objectives &Setting objectives &
performance targetsperformance targets
Formulating strategiesFormulating strategies
Implementing the selectedImplementing the selected
strategystrategy
Evaluation and controlEvaluation and control

The Strategic Planning ProcessThe Strategic Planning Process
This is the process of revising theThis is the process of revising the
existence of the enterprise (missionexistence of the enterprise (mission
statement), setting the long-term goalsstatement), setting the long-term goals
and objectives in view of yourand objectives in view of your
environment, formulating the best strategyenvironment, formulating the best strategy
of getting where you want to be.of getting where you want to be.
It does not include the strategyIt does not include the strategy
implementation phase(1/2 way the battleimplementation phase(1/2 way the battle
of outwitting your rivals)of outwitting your rivals)

Dimensions of strategyDimensions of strategy
A strategy as a planA strategy as a plan: course of action, a: course of action, a
guideline to deal with a situationguideline to deal with a situation
A strategy as a ployA strategy as a ploy- i.e a maneuver to win- i.e a maneuver to win
competitorscompetitors
A strategy as a patternA strategy as a pattern i.e. a series ofi.e. a series of
consistent actions/activitiesconsistent actions/activities
A strategy as a positionA strategy as a position- a means of locating- a means of locating
an organization in the environment/marketan organization in the environment/market
A strategy as a perspectiveA strategy as a perspective-it unites an-it unites an
organization by a common thinking towardsorganization by a common thinking towards
achieving common goalsachieving common goals

1 strategic management overview

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1 strategic management overview